Bitcoin in survival mode: miner signals reveal hidden opportunities in volatility

November’s volatility tested Bitcoin mining, but on-chain data tell a story of adaptation rather than panic. The Puell Multiple, a closely watched index by those who read the ecosystem’s pulse, hit a low of 0.67 in mid-month, marking its worst moment in a year. Interestingly, it then rose to 0.91, demonstrating that pressure on miners began to ease rapidly.

Miners Adjust Strategies

Mining reserves reached annual all-time lows, a clear sign of what happens when profitability contracts and mining difficulty relentlessly increases. Many operators liquidated positions to maintain operational margins, increasing selling pressure in the market. This behavior is typical in adjustment cycles but can also be interpreted as the weaker players having already exited the game.

Hash rate Maintains Strength

Despite everything, Bitcoin’s hash rate continued to climb, a movement that initially confuses. How is it possible to have more processing power if miners are selling? The answer is simple: the most cost-efficient operators remain active, while others leave. This suggests that the network still consists of actors with the strength to withstand tough periods.

Market Outlook

These indicators point to a scenario where Bitcoin could find attractive levels to enter, although it’s not guaranteed that it has already done so. There may be more pain before the selling cycle runs its course and profitability becomes enticing enough to attract new capital.